October 2013 Rental Market in Kingston

OTTAWA, ONTARIO--(Marketwired - Dec. 12, 2013) - The rental apartment vacancy rate1 in the Kingston Census Metropolitan Area (CMA) was 2.3 per cent in October 2013, up from 1.7 per cent in October 2012 according to the Fall Rental Market Survey released today by Canada Mortgage and Housing Corporation.

"This year`s softening of the vacancy rate in Kingston came as the number of newly completed rental units increased for a second year, adding much needed supply to the market. Employment among younger age groups saw little to no growth year-to-date, which likely inhibited household formation among a key rental group. As well, competition from homeownership remained strong as judged by sales numbers for smaller, less expensive dwelling types. Nevertheless, Kingston`s rental market remained tighter than its provincial peers," said Andrew Scott, CMHC's Market Analyst for Kingston

On the basis of a sample of structures common to both the 2012 and 2013 surveys2, the average two-bedroom rent increased by 2.8 per cent in Kingston. Three bedroom units in Kingston saw the largest increase at 3.7 per cent over last year.

The apartment vacancy rate changes within the Kingston CMA were mixed, with Zone 4 (Eastern and Outer Kingston) being the only area that saw a decline in vacancies. The rate in Zone 1 (Downtown) was relatively unchanged from the previous year. This area, which is close to Queen`s University where there is a high concentration of students, continued to see strong demand. The areas of Zone 2 (Portsmouth Village, Polson Park and Calvin Park) and Zone 3 (Glenarden, Rideau Heights, Kingscourt and Strathcona Park) both saw increases in their vacancy rate.

As Canada's national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable housing solutions. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making informed decisions.

1 The survey is based on privately-initiated rental apartment structures of three or more units.

2 Year-over-year comparisons of average rents can be slightly misleading because rents in newly built structures tend to be higher than in existing buildings. Excluding new structures and focusing on structures existing in both the October 2012 and October 2013 surveys provides a better indication of actual rent increases paid by tenants.